If you're an employer in Western Australia, you’re legally required to hold Workers’ Compensation Insurance to protect your employees from injury or illness that occurs as a result of their employment. In WA, “remuneration” includes any form of payment or allowance made to or on behalf of a worker, whether it’s cash, non-cash or in-kind benefit.

Whether you're a contractor signing on to a new project, a business leasing a premises, or a supplier entering into a service agreement — chances are your contract includes insurance requirements you’re expected to meet. If you don’t read the fine print closely, or if your policies don’t align with the terms, you could be: in breach of contract, exposed to uninsured liability, or worse — have a claim denied or be dropped from a project.

Workers compensation insurance isn't just another business expense—it's essential legal protection for both you and your employees. In Western Australia, if you employ anyone – whether full-time, part-time, or casual – you are legally required to maintain a current workers compensation insurance policy. This requirement applies from the moment you hire your first employee, regardless of the size of your business or industry.

If you’re a subcontractor in Western Australia, it’s common to be asked by a principal contractor or client to add them as an interested party on your workers' compensation policy, often referred to as a Principal’s Indemnity Extension. This provides evidence that if one of your workers is injured on the job they won't be held liable.